CAMBRIDGE, England—Crypto-asset service providers are paying close attention to compliance rules, a new report from the Cambridge Centre for Alternative Finance reveals.
The Cambridge Centre for Alternative Finance (CCAF) at the Cambridge Judge Business School has published the third edition of its Global Cryptoasset Benchmarking Study which highlights the industry’s efforts to address regulatory concerns over anti-money laundering (AML) and combating the financing of terrorism (CFT), but cautions that efforts to address issues such as a lack of insurance or auditing have the potential to hinder growth within the industry, Cambridge Network reported.
The study, which draws on data collected from more than 280 crypto-asset entities in 50+ countries, underlines that a greater share of crypto-asset service providers abide by AML/CFT obligations, a potential consequence of regulatory authorities’ efforts to harmonize their approaches to crypto-assets, such as initiated by the Financial Action Task Force (FATF), Cambridge Network explained.
Increase in Number of Firms
2019 saw a rise in the number of firms with an exclusive focus on crypto-assets that comply with AML/CFT regulations compared to 2018 (+67%).
“This results both from enhanced compliance, but also an overall reduction in the number of firms exclusively supporting crypto-assets. About 30% of firms that only offered crypto-assets in 2018 now support